Fundamental analysis of EUR/USD

After Thursday's decline, the pair is trading flat, stabilizing at 1.08450.
The recent movement of EUR/USD reflects the divergence of economic data. Eurozone inflation data showed positive dynamics: the harmonized consumer price index rose by 0.6% month-on-month, beating expectations of -0.1%. However, compared to the 4-month period, these data indicate a slowdown in the underlying dynamics of the harmonized consumer price index. In contrast, German retail sales data for July were disappointing, especially as the year-on-year decline was larger than expected. 
The ECB Executive Board report downplayed the likelihood of surprises from the central bank affecting the EUR/USD exchange rate. This contrasts with the positive view of ECB Policy Director Robert Holtzman and neutral comments from Isabel Schnabel. The Italian and Spanish manufacturing PMIs will be of interest as key data. Spain's PMI came in at 46.5 vs. the expected 48.8: such a significant drop could rival Italy's PMI. In addition, investors are watching the final purchasing managers' indices of France, Germany and Spain. An improvement in Italy's manufacturing sector could lead to an upward revision of the eurozone PMI. While the ECB continues to focus on inflation, the most important indicators are new orders, headcount, delivery times, and input and output price inflation. 
External factors such as ECB leadership talks and US employment data will also play a significant role in the pair's dynamics. The latter could influence the direction of monetary policy, especially in light of rising wage growth and falling unemployment in the US. Accelerating wage growth could stimulate consumption and trigger demand-driven inflationary pressures. 
In the US, data such as the core personal consumption price index for August matched market expectations and initial jobless claims were slightly above market expectations. In addition, while personal spending in July was better than expected, personal income came in slightly below expectations. These factors combined with weak US Treasury yields and stock futures suggest that EUR/USD could face resistance if there are no major surprises from the upcoming US business and labor market data. 
Technical analysis and scenarios:

Price is currently trading near the middle band. As the bands are indicating a slight narrowing and upward direction, this indicates a decline in volatility but with a slight bullish bias. The stochastic oscillator is at 17.1444, below the signal level of 10.4680. This means that the pair may be in oversold territory, signaling a possible bullish reversal. The MACD value is below its signal line, indicating a bearish sentiment. However, the values are close, so the trend is not strongly bearish. Given the oversold Stochastic and the location near the middle Bollinger band, there is a possibility of a price rebound.
Main scenario (BUY)
Recommended entry level: 1.08910.
Take Profit: 1.09350.
Stop Loss: 1.08750. 
Alternative scenario (SELL)
Recommended entry level: 1.08090.
Take profit: 1.07640.
Stop loss: 1.08250.